Canada’s federal government agreed late yesterday not to break 30 years of tradition and oppose a type of sales tax on First Nations, a proposal that had prompted widespread objections (See video above).

The action removes the threat by indigenous communities in Ontario to set up highway blockades on their reserves next week during the G8 and G20 summits, the CBC reports here.

Meanwhile, Ottawa criticized the provincial government’s handling of the issue.

The tax takes effect July 1, but the exemption for tribes won’t be in place until September. The government and First Nations are trying to work out a solution to that dilemma.

Last night’s action doesn’t mean an end to the issue. Aboriginal communities in other provinces want the same treatment, according to the CBC:

Rick Simon, the Assembly of First Nations’ regional chief for Nova Scotia and Newfoundland, said this week that aboriginal leaders in the Atlantic provinces would use the deal in Ontario to try to get negotiations for their HST exemption started again with Ottawa.

Stay tuned.

Gwen Florio

Tags: aboriginal, Assembly of First Nations, buffalo post, Canada, First Nations, Harmonized Sales Tax, HST, Ontario, Rick Simon